USD/JPY Price Forecast – US Dollar Falls Hard Against Japanese YenThe US dollar fell rather hard during the trading session on Thursday, as the Japanese yen started to strengthen. This is a bit of a “risk off” move, perhaps traders are starting to rethink the idea of the Federal Reserve announcements.
The US dollar has fallen hard against the Japanese yen during the trading session on Thursday, reaching down towards the 50 day EMA. This is obviously a very negative sign, but at this point we are starting to test an area that has been resistance in the past so therefore it should be somewhat supportive. The biggest thing is that we are heading towards the jobs figure on Friday, and that has a major influence on the currency markets in general but especially this one. At this point, the market looks very likely to bounce from here, but it may need some type of influence along the lines of a good jobs figure out the United States to get the “risk on” type of move as the market will shy away from the Japanese yen.
USD/JPY Video 01.11.19
That being said, the 200 day EMA has offered resistance again, so it shows just how difficult it’s going to be to go higher from this level, as it attracts a lot of attention. Beyond that, the ¥109.50 level has offered significant selling pressure in the past, the fact that the candlestick from the winter session has been a shooting star also shows just how resistant that is. I don’t expect the jobs market to be enough to send this market above that resistant barrier, but it could very well send this market towards that level. Otherwise, if we were to break down below the 50 day EMA, then the market goes looking towards the ¥107 level.
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